Anheuser-Busch Assumes Marketing and Selling Responsibility for Kirin Brands

25/08/06 Anheuser-Busch's 10-year alliance with Japanese brewer Kirin in the United States has expanded, with the American brewer assuming marketing and selling responsibility for the Kirin brands, the two companies announced today.

Anheuser-Busch has brewed and distributed Kirin Ichiban and Kirin Light for Kirin in the United States since 1996. The new agreement assigns Anheuser-Busch full oversight of the Kirin brands in the United States, while Kirin retains trademark responsibility for the brands.

"American consumers have a great interest in high-end Asian cuisine and culture, including Asian beer," said August A. Busch IV, president of Anheuser-Busch Inc. "We are aggressively expanding our range of high-end beers to meet the diverse needs of our consumers. The Kirin beers are of the highest quality and have enormous potential, as the Asian influence is rapidly growing. This new agreement enhances a truly global relationship between our two companies. Now, we also share a deeper commitment to each other's success."

Referring to the new agreement, Hitoshi Oshima, CEO of Kirin International, stated that "Kirin has been working with Anheuser-Busch in the U.S. market for almost ten years and we have great respect for them. Anheuser-Busch and Kirin share mutual understanding to enhance brand value through consumer focus and quality product."

Anheuser-Busch brews Kirin beers at its Los Angeles brewery, allowing U.S. consumers to enjoy Kirin products with brewery-fresh flavor. Kirin beers are distributed in the United States through the Anheuser-Busch network of 600 independent wholesalers.

The new agreement transforms the relationship from contract brewing to licensed brewing, with Anheuser-Busch assuming profit and loss responsibility for the business in the United States. The new marketing role for Anheuser- Busch succeeds Kirin Brewery of America LLC, a joint venture between the two companies formed under their 1996 agreement. The distribution network is unchanged.

The two brewers have also had a relationship in the Japanese market since 1993, where Kirin brews, distributes and sells Budweiser, the flagship brand of Anheuser-Busch.